Tracking legal, legislative, and regulatory developments impacting the racing and performance industry.

PRI’s Washington, DC-based legal and advocacy teams work continuously to protect and support motorsports venues, sanctioning bodies, and businesses around the nation. We are tracking several initiatives this month, including a successful and productive gathering of automotive professionals and state lawmakers in California, increased support for internal combustion engine (ICE) technology and sales, and a new tax incentive package that would support aftermarket businesses. 

PRI, SEMA Host Successful California Rally

Industry members gathered in Sacramento, California, in early June for the SEMA California Rally, allowing them to network with key lawmakers and advocate for the motorsports and automotive aftermarket industry. 

Topics covered during the full-day event included new vehicle technologies, manufacturing tax incentives, and the California Air Resources Board (CARB) executive order process. Attendees also discussed Proposition 65 compliance and the upcoming closure of the Oceano Dunes State Vehicular Recreation Area. 

“The motorsports and automotive aftermarket industries face significant challenges, and our voices must be heard. The SEMA California Rally was the perfect place to make your concerns known and advocate for policies supporting our industry’s growth and innovation,” said Christian Robinson, Senior Director of State Government Affairs and Grassroots for SEMA and PRI.

House Committee Passes Tax Incentive Package to Benefit Aftermarket Businesses

The U.S. House of Representatives Ways and Means Committee has passed the PRI-supported American Families and Jobs Act, a legislative package comprised of three bills from Committee Chairman Jason Smith (R-MO): the Tax Cuts for Working Families Act (H.R. 3936), the Small Business Jobs Act (H.R. 3937), and the Build It in America Act (H.R. 3938). The bill includes key provisions that will benefit automotive aftermarket businesses, including a 100% bonus depreciation for qualified property, expanded small business expensing to $2.5 million, and the restoration of immediate expensing for Research and Development (R&D) for tax years 2021 through 2025. The bill would also create full expensing for machines and equipment.

“These policies will provide relief for working families, strengthen small businesses, grow jobs, and protect American innovation and competitiveness,” said Committee Chairman Smith.

The American Families and Jobs Act now awaits consideration on the floor of the U.S. House of Representatives. 

For more information, including key provisions of the American Families and Jobs Act, contact Tiffany Cipoletti at tiffanyc@sema.org.

More Than 175 Members of Congress Oppose EPA’s Proposed Emissions Standards 

A total of 177 U.S. Senators and U.S. Representatives signed letters directed to U.S. Environmental Protection Agency (EPA) Administrator Michael Regan urging him to rescind the agency’s proposed emissions standards for light- and medium-duty vehicles and heavy-duty trucks. U.S. House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-WA) and U.S. Senate Environment and Public Works Committee Ranking Member Shelley Moore Capito (R-WV) sent letters pushing back on the EPA’s tailpipe emissions rule that would essentially put an end to the internal combustion engine (ICE) through this proposal. PRI and SEMA thank Chairwoman McMorris Rodgers and Ranking Member Capito for their leadership in opposing the EPA’s draft multipollutant rulemaking for model years 2027–2032 vehicles. If finalized, the EPA estimates the rule would lead to electric vehicles (EVs) making up two-thirds of new passenger vehicles sold in the United States by 2032. 

Congressional Republican members have come out in strong opposition to the EPA’s proposed rulemaking, as a supermajority of both the House and Senate Republican Caucus signed on Rep. McMorris Rodgers’ and Senator Capito’s letters opposing the EPA’s effort to transition the U.S. motor vehicle fleet away from ICE technology.

“There are many options on the road to zero emissions; it is crucial for government policy to remain technology neutral. The motorsports industry has been built around the internal combustion engine (ICE), although the industry is leading the way in fuel innovations and conversions of old vehicles into new and cleaner technologies,” said Eric Snyder, Senior Director of Federal Government Affairs for SEMA and PRI. “Hydrogen and other renewable fuels, including synthetic eFuels, will allow legacy vehicles to operate in a carbon-neutral manner and should have an equal seat at the table.” 

For more information, visit sema.org/EPA-Proposed-Greenhouse-Gas-Rules or contact Tiffany Cipoletti at tiffanyc@sema.org.